Probabilty of a few hundred pips retracement above 168.00 figure

This chart set up may not be particularly attractive just by its appearance. But it surely presents a great trading opportunity which is the bottom line here.There is probably significant short covering taking place in all the Yen pairs today pushing the Yen lower across the board.So it's time to figure out when the short covering will turn into a bull run.If the pair breaks above 1680.00,it'll present a good reason to the bulls to jump in.As can be seen from the weekly chart below,the pair is still above the 200 period SMA and has already pulled back from the longer term 38.2% fib retracement.A breach above 168.00 figure will mean no significant resistance until 174.88.But given the present Yen strength,if a long trade is taken it must be accompanied by 50-100 pips fixed trailing stops.

A short trade may be possible as well.But that's another story and will be posted here if the pair resumes its downtrend once again.

Trade closed manually:

Trade closed manually for 101 pips profit to avoid price gap during the weekend.But will look to re enter again on sunday.

Comment:

Check my twitter account for a snapshot of the trade.